Thank you R W Kennedy for the quick response----There is only one lease 120 acres that we leased with Shale but they are only going to lease 40 acres because my mom only has a third because the two brother families have a 1/3 each of her 120 acres. The way it was explained to me that when the other two families lease- then we will get 40 mineral acres from each of those leases. BUT you can’t tell me another company is going to be pay us our 40 ares when we are not leasing with them anymore than Shale is paying the other two families their share. I shooouted loud and clear(not really) why Shale (Being we are leasing with them) to lease the other to small pieces of the pie (80 acres. ) OH we can’t do that. I just donot see how we are ever going to get paid on the other 80 acres. My brother said his landman told him he was getting paid for his total share 20 acres. My landman talked with his landman and said they were in discussion half the morning and said it wasn’t so. I think maybe Shale choose not to lease all the acres we have right to. I am going to request a write out for all title work and how they came up with what they did. We all have different landman as we have seperate leases.
Oh also my brother went ahead and got seperate leases because he said otherwise if all our names are on the same lease and one of us dies we could not will our mineral rights to our husband or kids it would go back to the family. I never heard of such a thing, So is this a fact or a myth.
I Need input from Eastern Mt and R.W.Kenndy —I just found out something else today talking with my Landman. I so hope I can explain myself so you will get the drift of what I am trying to explain. On one parcel of land it consists of 360 acres which was divided by My Mom and her 2 brothers. Land was divided by 3–120 acres each but the mineral acres was not–was left undivded. we lease with Shale expecting 120 mineral acres. but I am told its like 3 pieces of pie and in each pie there is my Mom and her two brothers.equally but instead of paying us on a third of each piece of the pie they will only pay on my Mom third of her little piece of pie. All 6 of us should be getting 20 acres each of 120 we only get the 40 acres divided by 6 which equals 6.6 acres. My Uncles off spring if they would sign with Shale-- Shale still wouldn’t pay us a third of their pieces of pie as they are signing those two and not us. Also if thee other two signed with another company that company sure would not pay us our share of a third of their pieces of pie. Shale said they probably would not. Just doesn’t seem right and I spent a while in discussion on the phone with no avail. We were told at first they would pay us 120 acres but found out --NOT SO after they stopped leasing
Patti, if I understand, you are saying that the minerals were severed from the surface when the surface was divided and that your mom and her two brothers each inherited 120 acres surface and 1/3 interest in 360 mineral acres. Sounds reasonable as that way all 3 would benefit if a well was drilled including any part of it. Patti, if your family still owned 100% of the mineral rights, your mom would have inherited 120 net mineral acres and divided 6 ways you should have inherited 20 mineral acres, as you say. How much do your 3 leases add up to? If your 3 leases do not add up to 20 acres, the things I can think of that would explain it are :1) if your mom did not inherit 100% of the mineral rights to the 120/360 mineral acres,2) if Shale did not lease all the acres you have rights to,3) if really poor landman work was done assuming your mom only had rights to the minerals under that particular 120 acres of surface,4) and finally that someone could be pulling a fast one, that it could be years before you found out that you really did own 20 net mineral acres and not what they told you. There could be a clause in your lease that if you are found to have more acres or even if you inherit or purchase more acres in that area that those acres are leased also, that they would just have to pay you the bonus for those “found” acres when they are found. Patti, it all comes down to knowing what you own. If you know that your mom and uncles inherited 100% of the mineral rights to the 360 acres and your mom didn’t sell part of it, a mistake has been made and I wouldn’t let it stand, nor would I cash that $250 check for the one lease if all of your leases do not add up to the 20 net mineral acres you were supposed to inherit. In light of this new information, DO NOT CASH THE CHECK UNTIL YOU KNOW IT’S THE RIGHT AMOUNT. Patti, I suggest that you go through old wills and probates and deeds to get a firm idea of what you own. If someone lives in the area to follow the title from the original patent owner that would be even better. I would complain to Shale but it’s hard to do without being absolutely certain of what you own. I think I will be going to ND next spring to see for myself exactly what I own there. It’s alot easier to stare them down when you know what you own and there is one spot with a well on it that I want to be sure of. Your family may have to have someone do something similar. Maybe you could all get together and hire a landman to look for you, giving him as much information as you can scrape together beforehand, it might be cheap insurance.
Patti, that sounds like the reason, Shale is not leasing all of your minerals, or they shouldn’t be from what you have said. Your names should not all be on the same lease, you should each have a separate lease, not, I think because your share would automatically revert to the family, you own it, it goes where you will it or according to law to your heirs. From what you have told me Shale is only leasing 1/3 of your acres. I am curious how your lease reads. If it says 360 gross acres, and if it has the clause I spoke of that includes any other acres you have if it is later found that you have more acres. If so it would be a cheap and sneaky way to have an unpaid option on the remainder of your minerals and keep you tied up.
I recently inherited mineral rights from my mother with my brother and sister on land in Daniels County. A lease she signed over 5 years ago expired last year. Is it a matter of waiting to see if someone contacts us or should we be actively doing something? Any guidance would be appreciated.
the state web sight approved on dec 3 sec34 t36n-r47e. one is under apache expl. and the other is apache western expl. i am told that that western expl. is shale and apache together. also most in our family group got the $10 check and letter for an extention and yes they did give one member a check for what was owed her, i suppose to give the rest hope that eventually our money too, will arrive.
I think you can use the Shale address in Scobey and it will get to Apache.If you are not comfortable with that talk to Leigha Fishell , the shale office manager in Scobey. she will direct you.
Vickie was wondering is Jan 8th is your original date that Shale gave you or do I remember you saying your original date was 14th of Dec and if they gave you a new date of Jan 8th did you have to sign an extension???
Vicki, if you don’t itemize the bonus money is ordinary income. If you do itemize, I would search for posts by Joel, he is a cpa and has given advice on how to report the bonus money. Joel doesn’t post alot but usually has something to say when he does. I have signed 3 leases and never received any bonus money, 1 lease they decided they didn’t want, [big mistake on their part] 2 they released the lease under immediate threat of a lawsuit, the third I have suit against right now, but if I had been paid, I would have reported it as other on the EZ form as other because I am disabled and I don’t make enough to make it worth itemizing.
Sharlie Moore—If I remember correctly your bank draft was sent back to your bank and in doing so did you have to resign them and have them notarized . reason is my sister had to sign an extension and she did so and sent it back but now Saturday she received another letter saying they would send the bank drafts back to her bank to sign and notarize.
Hubby just got a call from Shale and our date is January 8th. I don’t know who is the most knowledgeable on here but his question is the taxes on this money. I read somewhere on here where someone thought you don’t have to pay taxes on it because it is rental income. For those who have recieved your money, what is the tax liability and is it taken out of the check?
We only estimated the week before Christmas because my husband didn’t call them to get an actual date. They didn’t ask for an extension. I guess they didn’t need it. What about taxes?
Vicki, my CPA handles lease bonus payments as rental income. Yet the effect is that it is still ordinary income and is fully taxable. Filing with a 1040 form you can itemize any business expenses you incure against that income. FYI, receiving it in January pushes that income into the 2013 tax year rather than this year’s. So if there is any question you have plenty of time to explore how to handle it with your CPA or accountant.